BC Partners is prepping a potential divestment of United Group's operations in Croatia to reset efforts to sell the wider business, according to people familiar with the matter who asked not to be named. A formal sale process is slated to kick off this month and is expected to attract interest from other private equity bidders.
Early indications suggest the Croatian business could change hands for around €700 million, anchored to earnings of about €100 million.
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The buyout firm has tapped JPMorgan Chase & Co. and begun gauging demand for the asset. BC Partners' representative said the firm had no comment, while JPMorgan did not immediately answer a request for comment.
United Group runs telecom and media services across southeast Europe. In Croatia it operates as Telemach Croatia, offering mobile and fixed broadband following United Group's purchase of Tele2 Croatia.
BC Partners bought a majority stake in United Group in 2019 from KKR & Co., which still holds a small stake. In 2024, Bloomberg News reported the firm weighed selling the entire company, but bidders zeroed in on select markets and the plan was ultimately shelved. Discussions are still fluid, and BC Partners could opt to keep the Croatian asset for longer.
For your money, the outcome here is a live read on how buyers value cash-generating telecom networks in smaller European markets. A strong price would hint at healthy appetite for carve outs in the region, while a pause would signal a market still picking its spots.
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